People use more resources to reduce their money holdings because of high inflation. What is this an example of?
A) inflation-induced tax distortions
B) resource misallocation costs
C) shoe leather costs
D) menu costs

Question

Quizplus · Accepted Answer

This is an example of shoe leather costs, which refers to the increased costs (such as time and effort) of managing money holdings due to high inflation.

People Use More Resources to Reduce Their Money Holdings Because